What lump-sum amount should the company invest now

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Fraser Company will need a new warehouse in eight years. The warehouse will cost $500,000 to build. Round answers to the nearest dollar.

Question 1: What lump-sum amount should the company invest now to have the $500,000 available at the end of the eight-year period? Assume that the company can invest money at eight percent.

Question 2: What lump-sum amount should the company invest now to have the $500,000 available at the end of the eight-year period? Assume that the company can invest money at thirteen percent.

Reference no: EM132510751

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